topic Re: Chapter 7 again in Bankruptcy

Chapter 7 again

soxfaininfl — Thu, 26 Oct 2023 04:37:07 GMT

Hi Everyone,

I currently have a Navy Federal Cash Rewards credit card. I currently bank with them too. I've had the card for a year and have never missed a payment with them. December of 2024 will be 8 years since my last chapter 7 BK. Well unfortunately I have to file chapter 7 again. I'm in severe debt of 167,000 (I know I can't get rid of the student loan debt). I also owe the IRS over 17K. The IRS debt is older than 3 years. I make 115,000 a year. I plan to pay off my Navy Federal Cash Rewards card before I even start the process of Chapter 7. I have small limit of 500. How long do I have to wait after I'm discharged before I can get a secured card with Navy to start rebuilding? I don't ever plan to get anymore credit cards. I just want to have one with Navy and that's it! I don't want to ever be in this mess again. I can't believe I'm in this nightmare again. I've learned my lesson and need to live within my means.

Thanks,

Soxfaninfl

Re: Chapter 7 again

GZG — Thu, 26 Oct 2023 05:04:58 GMT

the first step is getting what should be a free appointment with a BK attorney

they will walk you though what you should and need to do and what not to do, and you can express your desire not to burn navy and what you want to do in the future after BK with them and they'll tell you what that process will look like

If you can file ch7 even or if you have to file ch13

if you should or if you can pay off navy or any other creditor before you file

how student loans or IRS impact the BK if at all

if you should even file at all

all questions you should ask them when you have the appointment

Re: Chapter 7 again

soxfaininfl — Thu, 26 Oct 2023 10:52:56 GMT

@GZG wrote:
the first step is getting what should be a free appointment with a BK attorney

they will walk you though what you should and need to do and what not to do, and you can express your desire not to burn navy and what you want to do in the future after BK with them and they'll tell you what that process will look like

If you can file ch7 even or if you have to file ch13

if you should or if you can pay off navy or any other creditor before you file

how student loans or IRS impact the BK if at all

if you should even file at all

all questions you should ask them when you have the appointment

I've already started the process and contacted an attorney for a free consult. I have an appointment next week. I am in a debt management program right now but can't afford it (1k a month) due to my wife's health issues and lack of income that she averages 1,800 a month. I basically pay for everything. She had no income for the months of July and August due to her health issues, so I also had to pay the mortgage which is roughly 1,500 a month for 2 months. She had surgery 2 weeks ago, and hasn't work now for 2 weeks straight. She is a copywriter that does freelance. She was making 75K a year ago but got laid off and her health issues have gotten worse, so she's only working like 10 hours a week when she can. She's only made 20K to date this year. The mortgage is in her name. It's a little over 108,000. She has a little over to 4k in cc debt herself of which 2595 is in collections. I know she has IRS debt too, but I'm not sure the total amount. I know it's over 5K atleast. I know I can't acctually file till my last BK7 is exactly 8 years old December 30th 2024. I did include the IRS during my last BK7. It was only a few thousand dollars since I was on a installment agreement for a year that was 3 years old or older.

Re: Chapter 7 again

FireMedic1 — Thu, 26 Oct 2023 16:31:46 GMT

Tough spot. There are a few qualifications to get IRS back taxes DC'ed. Thats what made me file after chasing me for 16 yrs. The other decison is. You can claim since your not on the deed. The lawyer can give you options filing single or joint. Wipe yours or wipe it all out. Comes down to numbers and other issues. Seek consult and let us know what came up in your meeting.

Re: Chapter 7 again

soxfaininfl — Thu, 26 Oct 2023 16:43:15 GMT

@FireMedic1 wrote:
Tough spot. There are a few qualifications to get IRS back taxes DC'ed. Thats what made me file after chasing me for 16 yrs. The other decison is. You can claim since your not on the deed. The lawyer can give you options filing single or joint. Wipe yours or wipe it all out. Comes down to numbers and other issues. Seek consult and let us know what came up in your meeting.

Sure, will do FireMedic1.

Re: Chapter 7 again

soxfaininfl — Fri, 27 Oct 2023 16:45:16 GMT

@FireMedic1 wrote:
Tough spot. There are a few qualifications to get IRS back taxes DC'ed. Thats what made me file after chasing me for 16 yrs. The other decison is. You can claim since your not on the deed. The lawyer can give you options filing single or joint. Wipe yours or wipe it all out. Comes down to numbers and other issues. Seek consult and let us know what came up in your meeting.

I had a call the this morning with the bankrupcy attonery, and he informed me that I don't qualify for chapter 7 due to my income. It doesn't matter how much debt I have, I don't qualify. He said I would only qualifiy for chapter 13, and that woud last 5 years with the amount of debt I have. I don't want to be in payment program for 5 years and some trustee looking at my fiances constantly. I've that they would increase the payments if I earn more income if I were to get a higher paying job of 115,000 which I plan on in the next year. I'm just gonna stick with Freedom Debt relief for another 3 years and tuff it out.

Re: Chapter 7 again

FireMedic1 — Sat, 28 Oct 2023 09:14:56 GMT

Good luck.

Re: Chapter 7 again

Creditwiser — Sat, 28 Oct 2023 10:52:22 GMT

Just want to say that you need to find a way to break the cycle you're in somehow. Deal with what s in front of you if its the 3 year sentence you speak of . But its important to have a plan for when you come out of it. Set yourself up for success and weather through it . Best of luck to you and im willing to bet you can hedge that luck if you stick around here and learn as you go forward. This community can hel[p guide you through the credit gauntlet and prepare you for the rebuild.

Re: Chapter 7 again

Rogue46 — Sat, 28 Oct 2023 13:48:50 GMT

I would second what @Creditwiser said about breaking the cycle. It appears you got right back into debt pretty quickly after filing the first time so unless you have a firm budget and plan this time around it's going to be tough not repeating the same behavior. I wish you the best of luck and keep us updated on your progress

Re: Chapter 7 again

soxfaininfl — Sat, 28 Oct 2023 17:03:06 GMT

@Creditwiser wrote:
Just want to say that you need to find a way to break the cycle you're in somehow. Deal with what s in front of you if its the 3 year sentence you speak of . But its important to have a plan for when you come out of it. Set yourself up for success and weather through it . Best of luck to you and im willing to bet you can hedge that luck if you stick around here and learn as you go forward. This community can hel[p guide you through the credit gauntlet and prepare you for the rebuild.

Trust me, I've learned my lesson. I'm just going to carry only my Apple Card (1,500) and my Navery Federal Cash Rewards (500) card. Once I'm done with Freedom Debt Releif, I'm never opening another credit card ever again. If GS or Navy try increase may limits, I will tell them to lower them back to what I had. With my income level I can pay off those 2 cards every pay check. At the end of the day, I don't care about my credit score anymore. I'm done keeping up with the Joneses. This is enough credit needed for me. I have a home that will be paid off in 10 years and I have a car with low miles that I plan to keep for another 10 years. My wife's car is paid off with only 63,000 miles. If I don't have it then I can't spend it.

Re: Chapter 7 again

CWESTL — Sun, 29 Oct 2023 14:37:19 GMT

Good to hear you've evaluated your current circumstance and "learning your lesson". I would only add that the true test of one's learning/discipline is not what is said or done when there are few option, but rather when you have all the options at your fingertips. Limiting the number of credit cards you have can be useful for managing your finances. However, reviewing what you've shared it appears you could benefit from a tax and financial advisor to ensure your focus is not only on immediate debt, but preparing for better tax strategy along with a comprehensive understanding of your medium to long term financial needs. Such knowledge could allow you to view your financial picture through a proactive comprehensive lens and not only a reactionary fear driven debtors mentality.

Re: Chapter 7 again

pizza1 — Tue, 31 Oct 2023 00:17:21 GMT

I'd be very careful paying creditors before filing. The trustees are there for the creditors, NOT you, and they will pull your financial statements, credit reports, etc..and go over them with a fine tooth comb. If they see payments made to one creditor, and not others, within a certain time frame before filing, it will look like favoritism, and they can actually ask for that back from the creditor, and then they could become suspicious of you wondering who else you've paid. You don't want to do anything that will come back and bite you, and risk having your BK dismissed, or forced 13.

A note on Dismissed BK's......Dismissed BK's will still show on all your credit reports for several years, as "Dismissed", instead of "discharged" and if that happens, there's a waiting period after a dismissal before you can file again. Also, once a BK has been dismissed, the automatic stay in no longer in effect, and creditors can come back after you again.

Also, regardless if your accounts are in "good standing" and zero balance before filing, once the BK filing hits the reports, and everyone gets wind of it, dont be surprised that Navy and Apple, or whomever you have at a zero balance in good standinging, close the accounts anyways. It happens.